We are sitting around licking our chops at the pent up demand. I can’t talk for other manufacturers, but GM is extending its 0% financing and the rebates are going to be crazy when we can officially open. I can start working deals with customers online Monday. My particular dealership is also offering an additional $1000 off a new car.
Spring and summer is going to be a great time to buy a car for customers and sales people.
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
I mean In addition to what GM offers. No other dealer in our area can afford to do that. We sell 600 new cars a month and 80% are leased. An additional $1000 off a lease can be $25-$35 per month. That’s substantial for most people.
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
I mean In addition to what GM offers. No other dealer in our area can afford to do that. We sell 600 new cars a month and 80% are leased. An additional $1000 off a lease can be $25-$35 per month. That’s substantial for most people.
Agreed Steve. That was my point in response to the poster above, expecting some huge price discount isn’t realistic as the markup vs the production cost difference isn’t that high on new cars anymore. 0% combined with 1k from the dealership is strong.
RE: I sell at the second biggest chevy dealer in the country
We are sitting around licking our chops at the pent up demand. I can’t talk for other manufacturers, but GM is extending its 0% financing and the rebates are going to be crazy when we can officially open. I can start working deals with customers online Monday. My particular dealership is also offering an additional $1000 off a new car.
Spring and summer is going to be a great time to buy a car for customers and sales people.
Crazy is like 15% off what a dealer would normally be willing to accept.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Crazy is like 15% off what a dealer would normally be willing to accept.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Right. People expecting that kind of deal are nuts. I spoke to a guy yesterday that wants two cars. He expects To get a $28k Equinox For $22k and to pay $200/month for a $47k truck. That’s a ridiculous expectation. There’s simply not that much mark up on a vehicle.
As for refinancing, that’s up to your bank. Idk what interest rates are.
RE: RE: I sell at the second biggest chevy dealer in the country
We are sitting around licking our chops at the pent up demand. I can’t talk for other manufacturers, but GM is extending its 0% financing and the rebates are going to be crazy when we can officially open. I can start working deals with customers online Monday. My particular dealership is also offering an additional $1000 off a new car.
Spring and summer is going to be a great time to buy a car for customers and sales people.
Should I talk to someone about refinancing?
I work in banking. Def call up a bank and talk to them to see what the rate is. Rates were historically low a few weeks ago but have been volatile since, shooting up then dropping down. But, make sure you know how much interest you are paying now, how much youll be paying in the future and if the fees make it worth it to refinance.
Usually it lowers your monthly payment but extends the life of the loan and the interest you pay.
But its always worth exploring if the rates are substantially lower. I prefer credit Unions, they usually have better rates and less stringent credit-metric requirements.
If I am a dealer, I am offering to throw in the extended warranty 100k miles and a few other things. The warranty has a cost yes but that also drives the customers back to your service department to fix everything that insurance will cover instead of going to pep boys.
The truth is I am surprised more dealers do not bend more on the warranty thing even during good times.
Right now inventory should be high. That would mean that prices should be lower to clear the lots.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Right now inventory should be high. That would mean that prices should be lower to clear the lots.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Economy is going to be in the dumper after this is all over. Not a lot of people are going to be looking to make a major purchase.
RE: I agree that expecting a 15% reduction is unlikely... BUT..
If I am a dealer, I am offering to throw in the extended warranty 100k miles and a few other things. The warranty has a cost yes but that also drives the customers back to your service department to fix everything that insurance will cover instead of going to pep boys.
The truth is I am surprised more dealers do not bend more on the warranty thing even during good times.
That’s what my dealership does. We can bend a lot more since we sell 600 cars a month. Others can’t as much because they don’t have the volume we do.
Right now inventory should be high. That would mean that prices should be lower to clear the lots.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Not really. The plants are closed so no cars are being made. The supply isn’t as high. Especially for GM since we had a strike last year too.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Of course that's what the guy selling you the car wants you to think.
A few years ago, I bought a brand new Accord for slightly under $20K. I believe the MSRP was somewhere in the $22K-23K range.
My guess is there is going to be alot of pent up demand when things open up in a month or two. I have lease customers who are going to extend a month or two and then pull the trigger. It will be interesting to see if there ends up being a supply problem if sales kick back up. Supply chains are a mess right now.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Of course that's what the guy selling you the car wants you to think.
A few years ago, I bought a brand new Accord for slightly under $20K. I believe the MSRP was somewhere in the $22K-23K range.
Here's some key factors that you're not including:
- What time of year was it?
- Was it the newest model year or was it a model year behind?
- Was the new model year about to be released?
- Was it near the end of the month or end of quarter?
- How long had that car been on the lot and what kind of floor line does the dealership have (and thus what kind of sunk cost for carriage rate would be included)?
- Did you finance or pay cash?
- If you financed, what rate did you get? How long was your note?
- Was the discount spread entirely covered by the dealer or was it a factory rebate?
For the record, my POV isn't based on "what the guy selling you the car wants you to think." It's based on having been raised in a family where my parents owned car dealerships for most of my childhood.
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
In the end, it comes down to who is more motivated...
The car shopper to buy the car or the dealer to sell one.
Is end of year Or if we have a ton of inventory on that model. And then we are losing money on the car. We can lose $2 or $3k on a car because we will make it up on the next guy and dealership bonuses from GM. Again, very few dealerships can do that. That’s the beauty of working at a volume-based dealership that sells 600 cars a month.
Service department will come to you and pick up the car for service.
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
In the end, it comes down to who is more motivated...
The car shopper to buy the car or the dealer to sell one.
No, that's not really what it comes down to.
A dealer can have all the motivation in the world to move inventory and if you come looking to pay cash on the first day of January, April, July, or October, asking for the newest model year of their hottest car, and the specific color and options package has been on the lot for a day, you're not getting a deal.
If you and your sales buddies are "licking your chops" because of the "pent up demand", with all due respect, there is a reason why you sell cars. If you think that, after this is over, the vast majority of people are going to be looking to buy a new car, I can't help you. Most people will be so financially damaged by this shutdown that the last thing they will want to be doing is buying any big ticket item. They'll be looking to simply make ends meet. I think you better rethink this one.
Owning a car is very traditional, but not necessarily a great use of capital. It sits in the driveway unused way too much, depreciating.
While thats not a disincentive to any individual, collectively you are unlikely see huge demand surges as in the past....Uber/lyft are too convenient and will fill the margin if prices get infelxible.
If you and your sales buddies are "licking your chops" because of the "pent up demand", with all due respect, there is a reason why you sell cars. If you think that, after this is over, the vast majority of people are going to be looking to buy a new car, I can't help you. Most people will be so financially damaged by this shutdown that the last thing they will want to be doing is buying any big ticket item. They'll be looking to simply make ends meet. I think you better rethink this one.
First off...F U. You don’t know me so how dare you assume anything about me. I’m not looking to take advantage of anyone and never have. I work very hard at what I do and take pride in my near perfect customer satisfaction rating. I am a top-five sales person out of 40 at the second biggest chevy dealership in the whole country. I know my business. If any sales person, whether it’s B2B or B2C, isn’t excited about pent up demand for what ever product they sell, than they’re just not a good sales person.
Second off....you don’t know what you’re talking about at all. I’ve had at least 20 customers already tell me when we open to call because they are ready for new cars and my company itself has 300 leads to follow up on. The demand is there. Will there be a percentage of people so negatively affected by this that they can’t get cars, of course. But a very good portion will also want them.
Here's some key factors that you're not including:
- What time of year was it?
- Was it the newest model year or was it a model year behind?
- Was the new model year about to be released?
- Was it near the end of the month or end of quarter?
- How long had that car been on the lot and what kind of floor line does the dealership have (and thus what kind of sunk cost for carriage rate would be included)?
- Did you finance or pay cash?
- If you financed, what rate did you get? How long was your note?
- Was the discount spread entirely covered by the dealer or was it a factory rebate?
It was for a new car. The two biggest factors were:
- Did my homework by calling every dealer in the area and got their lowest price.
- Walked out of the dealership when they didn't accept my offer.
A week later I called the salesmen back and he accepted my offer. This setup a relationship with the dealership.
Two years later I walk back into the dealership willing to buy another vehicle. I made an offer to the same salesman and he accepted my offer within 5 minutes.
I personally don't buy into this gimmicky playbook of vehicle purchasing. The most important move is sticking to one's conviction.
I walked into the dealership on the last of the month AND quarter. It was a rainy Saturday and it was close to closing time. I thought I had it made. I offered something like $750 or $1,000 off the asking price of a $25K-something CRV and they declined. I was shocked but I stuck to my guns and walked out.
As I reread what I wrote, I realize that it came out a lot worse then I had meant it to. I am truly sorry, as I was in no way meaning to question you or your integrity. I should have just written that I think the economy is going to be in real trouble the longer this goes on and I would think that the last thing on people's minds would be to purchase new cars or homes or other big ticket items. I hope I'm completely wrong and I hope you do great and are right. Again, sorry, it came out in text very snarky and it wasn't meant to be. All the best to you.
A dealer can have all the motivation in the world to move inventory and if you come looking to pay cash on the first day of January, April, July, or October, asking for the newest model year of their hottest car, and the specific color and options package has been on the lot for a day, you're not getting a deal.
Well you just painted a scenario where the dealer is not motivated.... beginning of the quarter.
As I reread what I wrote, I realize that it came out a lot worse then I had meant it to. I am truly sorry, as I was in no way meaning to question you or your integrity. I should have just written that I think the economy is going to be in real trouble the longer this goes on and I would think that the last thing on people's minds would be to purchase new cars or homes or other big ticket items. I hope I'm completely wrong and I hope you do great and are right. Again, sorry, it came out in text very snarky and it wasn't meant to be. All the best to you.
Thank you. I appreciate that. Best to you as well.
You are going to have an entire quarters worth of leads
including people coming up on an end of lease (me). The car market will be fine I think and people leasing need to still make a transaction (re-lease or buy). I guess they can just return it too if they no longer need a car or if it was an extra vehicle but I don’t think that’s a large percentage.
RE: You are going to have an entire quarters worth of leads
including people coming up on an end of lease (me). The car market will be fine I think and people leasing need to still make a transaction (re-lease or buy). I guess they can just return it too if they no longer need a car or if it was an extra vehicle but I don’t think that’s a large percentage.
That’s correct. We’re actually opening on Monday. I will work deals from home and only go in to do the paperwork. We have a “clean room” of sorts for the customer and me. Every customer gets gloves, a mask and an out of the package pen. We will see how it goes.
I had a Toyota dealer trying hard to sell me on a car I'd looked at before.
It was a Hybrid Highlander - 2019. They didn't want to give me a hard price, just kept saying that if I'd come in and sit down they'd really give me a good deal. They had it listed online discounted around $3k below MSRP, so I can only imagine they were looking lower than that.
They were also saying they had 90 day no payment, fwiw, and that Toyota financing always gave something like 6 weeks before payments were to begin, so that would make it late July early August before any payments were to begin.
They also seemed really anxious for a trade - said they were really low on used inventory.
Curious due to current state of affairs how are test drives handled? Wish you the best,and safety to all.
Usually I go on test drives with the customer. Now We are giving our customers wipes and allowing them to clean what they want and go by themselves.
My Honda rep always lets us take it without him which I love. I enjoy being able to speak freely to my wife, and not have to answer questions when I'm trying to see if I enjoy the ride. We can talk about stuff when I get back.
Curious due to current state of affairs how are test drives handled? Wish you the best,and safety to all.
Usually I go on test drives with the customer. Now We are giving our customers wipes and allowing them to clean what they want and go by themselves.
My Honda rep always lets us take it without him which I love. I enjoy being able to speak freely to my wife, and not have to answer questions when I'm trying to see if I enjoy the ride. We can talk about stuff when I get back.
One of the worst parts of the car process is the limited test drive experience. If you really want me to buy/lease you'll let me drive it on the highway and for more than 1-2 miles around town.
Steve, can you explain why VW has such a ridiculous leasing program? My wife really wanted the Atlas and the dealer gave us a lease quote of 600+/mth for a $52k sticker. I went through a broker and leased an Infiniti QX60 for $400/mth and only paying 1st month. That same broker told me that he can get clients in to an Audi Q7 for the same monthly price as the Atlas
High lease prices are tied to the residual value of the car
If you and your sales buddies are "licking your chops" because of the "pent up demand", with all due respect, there is a reason why you sell cars. If you think that, after this is over, the vast majority of people are going to be looking to buy a new car, I can't help you. Most people will be so financially damaged by this shutdown that the last thing they will want to be doing is buying any big ticket item. They'll be looking to simply make ends meet. I think you better rethink this one.
First off...F U. You don’t know me so how dare you assume anything about me. I’m not looking to take advantage of anyone and never have. I work very hard at what I do and take pride in my near perfect customer satisfaction rating. I am a top-five sales person out of 40 at the second biggest chevy dealership in the whole country. I know my business. If any sales person, whether it’s B2B or B2C, isn’t excited about pent up demand for what ever product they sell, than they’re just not a good sales person.
Second off....you don’t know what you’re talking about at all. I’ve had at least 20 customers already tell me when we open to call because they are ready for new cars and my company itself has 300 leads to follow up on. The demand is there. Will there be a percentage of people so negatively affected by this that they can’t get cars, of course. But a very good portion will also want them.
Steve... you are an asshole. I don't know you either, but your response is very well... car sales person... slimy that is.
As I reread what I wrote, I realize that it came out a lot worse then I had meant it to. I am truly sorry, as I was in no way meaning to question you or your integrity. I should have just written that I think the economy is going to be in real trouble the longer this goes on and I would think that the last thing on people's minds would be to purchase new cars or homes or other big ticket items. I hope I'm completely wrong and I hope you do great and are right. Again, sorry, it came out in text very snarky and it wasn't meant to be. All the best to you.
Thank you. I appreciate that. Best to you as well.
This also backs up my last you are a slimy car sales person. He apologizes for his comments which you blew up with a F U! Where is your apology for over reacting like a little baby. Awwww did he not agree with with you wahhhhhh!
it sounds like you think that about anyone in sales, which says more about you than them. I can see why his initial post looked a bit harsh but he explained it and I thin it makes sense.
And there are slimy people in any profession, not just sales. And all Steve said was there's absolutely demand and he's looking forward to working again and giving his customers what they want (sounds like a win win). He isn't preying on people that can't afford it like you are making it seem.
it sounds like you think that about anyone in sales, which says more about you than them. I can see why his initial post looked a bit harsh but he explained it and I thin it makes sense.
And there are slimy people in any profession, not just sales. And all Steve said was there's absolutely demand and he's looking forward to working again and giving his customers what they want (sounds like a win win). He isn't preying on people that can't afford it like you are making it seem.
Very very strange.
Oh I totally agree there are slimy people everywhere and there are good people everywhere. There is slimy IT guys which is the field I work in and there are non-slimy car sales people. Saying that, this guy starts off with a F U and didn't even apologize for it after the guy apologizes. He has the nerve to talk about integrity... please.
Spring and summer is going to be a great time to buy a car for customers and sales people.
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
Quote:
Define "crazy".
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
I mean In addition to what GM offers. No other dealer in our area can afford to do that. We sell 600 new cars a month and 80% are leased. An additional $1000 off a lease can be $25-$35 per month. That’s substantial for most people.
Quote:
In comment 14861191 Knineteen said:
Quote:
Define "crazy".
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
Unless you are talking about used cars, there isn’t a lot of profit being made on the price of the vehicle. From a dealer perspective it’s all in the financing and aftermarket products (tire and wheel protection, etc.).
I mean In addition to what GM offers. No other dealer in our area can afford to do that. We sell 600 new cars a month and 80% are leased. An additional $1000 off a lease can be $25-$35 per month. That’s substantial for most people.
Agreed Steve. That was my point in response to the poster above, expecting some huge price discount isn’t realistic as the markup vs the production cost difference isn’t that high on new cars anymore. 0% combined with 1k from the dealership is strong.
Spring and summer is going to be a great time to buy a car for customers and sales people.
Should I talk to someone about refinancing?
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Quote:
Define "crazy".
$1,000 off a $25K isn't really crazy.
Crazy is like 15% off what a dealer would normally be willing to accept.
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Right. People expecting that kind of deal are nuts. I spoke to a guy yesterday that wants two cars. He expects To get a $28k Equinox For $22k and to pay $200/month for a $47k truck. That’s a ridiculous expectation. There’s simply not that much mark up on a vehicle.
As for refinancing, that’s up to your bank. Idk what interest rates are.
Quote:
We are sitting around licking our chops at the pent up demand. I can’t talk for other manufacturers, but GM is extending its 0% financing and the rebates are going to be crazy when we can officially open. I can start working deals with customers online Monday. My particular dealership is also offering an additional $1000 off a new car.
Spring and summer is going to be a great time to buy a car for customers and sales people.
Should I talk to someone about refinancing?
I work in banking. Def call up a bank and talk to them to see what the rate is. Rates were historically low a few weeks ago but have been volatile since, shooting up then dropping down. But, make sure you know how much interest you are paying now, how much youll be paying in the future and if the fees make it worth it to refinance.
Usually it lowers your monthly payment but extends the life of the loan and the interest you pay.
But its always worth exploring if the rates are substantially lower. I prefer credit Unions, they usually have better rates and less stringent credit-metric requirements.
Bethpage FCU offers car loan refinancing.
The truth is I am surprised more dealers do not bend more on the warranty thing even during good times.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Economy is going to be in the dumper after this is all over. Not a lot of people are going to be looking to make a major purchase.
The truth is I am surprised more dealers do not bend more on the warranty thing even during good times.
That’s what my dealership does. We can bend a lot more since we sell 600 cars a month. Others can’t as much because they don’t have the volume we do.
Once the dam burst and the US goes back to work the prices will be much higher considering no vehicles are being built right now and there would be less supply and higher demand.
Not really. The plants are closed so no cars are being made. The supply isn’t as high. Especially for GM since we had a strike last year too.
Of course that's what the guy selling you the car wants you to think.
A few years ago, I bought a brand new Accord for slightly under $20K. I believe the MSRP was somewhere in the $22K-23K range.
But off a Honda Pilot? No way.
Also, auto loans are getting out of control.
Average car loan is now 70 months. Average payment $550.
People are buying way more car then they need.
Quote:
There's nowhere near 15% between tissue and MSRP. $1K is already biting off most of the margin (although I'm sure it's a factory rebate so the store itself isn't bearing that burden themselves).
Of course that's what the guy selling you the car wants you to think.
A few years ago, I bought a brand new Accord for slightly under $20K. I believe the MSRP was somewhere in the $22K-23K range.
Here's some key factors that you're not including:
- What time of year was it?
- Was it the newest model year or was it a model year behind?
- Was the new model year about to be released?
- Was it near the end of the month or end of quarter?
- How long had that car been on the lot and what kind of floor line does the dealership have (and thus what kind of sunk cost for carriage rate would be included)?
- Did you finance or pay cash?
- If you financed, what rate did you get? How long was your note?
- Was the discount spread entirely covered by the dealer or was it a factory rebate?
For the record, my POV isn't based on "what the guy selling you the car wants you to think." It's based on having been raised in a family where my parents owned car dealerships for most of my childhood.
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
In the end, it comes down to who is more motivated...
The car shopper to buy the car or the dealer to sell one.
Quote:
There are a lot of factors that can work out in a buyer's favor when they're purchasing a new car. The dealer's profit margin as an opportunity for wiggle room is very far down the list of things that end up being part of the computation, and is very rarely large enough to achieve the type of win in negotiations that you think is realistic.
In the end, it comes down to who is more motivated...
The car shopper to buy the car or the dealer to sell one.
No, that's not really what it comes down to.
A dealer can have all the motivation in the world to move inventory and if you come looking to pay cash on the first day of January, April, July, or October, asking for the newest model year of their hottest car, and the specific color and options package has been on the lot for a day, you're not getting a deal.
While thats not a disincentive to any individual, collectively you are unlikely see huge demand surges as in the past....Uber/lyft are too convenient and will fill the margin if prices get infelxible.
First off...F U. You don’t know me so how dare you assume anything about me. I’m not looking to take advantage of anyone and never have. I work very hard at what I do and take pride in my near perfect customer satisfaction rating. I am a top-five sales person out of 40 at the second biggest chevy dealership in the whole country. I know my business. If any sales person, whether it’s B2B or B2C, isn’t excited about pent up demand for what ever product they sell, than they’re just not a good sales person.
Second off....you don’t know what you’re talking about at all. I’ve had at least 20 customers already tell me when we open to call because they are ready for new cars and my company itself has 300 leads to follow up on. The demand is there. Will there be a percentage of people so negatively affected by this that they can’t get cars, of course. But a very good portion will also want them.
- What time of year was it?
- Was it the newest model year or was it a model year behind?
- Was the new model year about to be released?
- Was it near the end of the month or end of quarter?
- How long had that car been on the lot and what kind of floor line does the dealership have (and thus what kind of sunk cost for carriage rate would be included)?
- Did you finance or pay cash?
- If you financed, what rate did you get? How long was your note?
- Was the discount spread entirely covered by the dealer or was it a factory rebate?
It was for a new car. The two biggest factors were:
- Did my homework by calling every dealer in the area and got their lowest price.
- Walked out of the dealership when they didn't accept my offer.
A week later I called the salesmen back and he accepted my offer. This setup a relationship with the dealership.
Two years later I walk back into the dealership willing to buy another vehicle. I made an offer to the same salesman and he accepted my offer within 5 minutes.
I personally don't buy into this gimmicky playbook of vehicle purchasing. The most important move is sticking to one's conviction.
I walked into the dealership on the last of the month AND quarter. It was a rainy Saturday and it was close to closing time. I thought I had it made. I offered something like $750 or $1,000 off the asking price of a $25K-something CRV and they declined. I was shocked but I stuck to my guns and walked out.
No, that's not really what it comes down to.
A dealer can have all the motivation in the world to move inventory and if you come looking to pay cash on the first day of January, April, July, or October, asking for the newest model year of their hottest car, and the specific color and options package has been on the lot for a day, you're not getting a deal.
Well you just painted a scenario where the dealer is not motivated.... beginning of the quarter.
Thank you. I appreciate that. Best to you as well.
That’s correct. We’re actually opening on Monday. I will work deals from home and only go in to do the paperwork. We have a “clean room” of sorts for the customer and me. Every customer gets gloves, a mask and an out of the package pen. We will see how it goes.
Usually I go on test drives with the customer. Now We are giving our customers wipes and allowing them to clean what they want and go by themselves.
It was a Hybrid Highlander - 2019. They didn't want to give me a hard price, just kept saying that if I'd come in and sit down they'd really give me a good deal. They had it listed online discounted around $3k below MSRP, so I can only imagine they were looking lower than that.
They were also saying they had 90 day no payment, fwiw, and that Toyota financing always gave something like 6 weeks before payments were to begin, so that would make it late July early August before any payments were to begin.
They also seemed really anxious for a trade - said they were really low on used inventory.
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Curious due to current state of affairs how are test drives handled? Wish you the best,and safety to all.
Usually I go on test drives with the customer. Now We are giving our customers wipes and allowing them to clean what they want and go by themselves.
My Honda rep always lets us take it without him which I love. I enjoy being able to speak freely to my wife, and not have to answer questions when I'm trying to see if I enjoy the ride. We can talk about stuff when I get back.
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In comment 14863310 Simms said:
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Curious due to current state of affairs how are test drives handled? Wish you the best,and safety to all.
Usually I go on test drives with the customer. Now We are giving our customers wipes and allowing them to clean what they want and go by themselves.
My Honda rep always lets us take it without him which I love. I enjoy being able to speak freely to my wife, and not have to answer questions when I'm trying to see if I enjoy the ride. We can talk about stuff when I get back.
One of the worst parts of the car process is the limited test drive experience. If you really want me to buy/lease you'll let me drive it on the highway and for more than 1-2 miles around town.
Steve, can you explain why VW has such a ridiculous leasing program? My wife really wanted the Atlas and the dealer gave us a lease quote of 600+/mth for a $52k sticker. I went through a broker and leased an Infiniti QX60 for $400/mth and only paying 1st month. That same broker told me that he can get clients in to an Audi Q7 for the same monthly price as the Atlas
The Atlas is in demand though so I think they may also increase the money factor to make more money.
Infiniti does not have a great residual factor either but they are just flat out desperate. Seriously they are tanking.
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If you and your sales buddies are "licking your chops" because of the "pent up demand", with all due respect, there is a reason why you sell cars. If you think that, after this is over, the vast majority of people are going to be looking to buy a new car, I can't help you. Most people will be so financially damaged by this shutdown that the last thing they will want to be doing is buying any big ticket item. They'll be looking to simply make ends meet. I think you better rethink this one.
First off...F U. You don’t know me so how dare you assume anything about me. I’m not looking to take advantage of anyone and never have. I work very hard at what I do and take pride in my near perfect customer satisfaction rating. I am a top-five sales person out of 40 at the second biggest chevy dealership in the whole country. I know my business. If any sales person, whether it’s B2B or B2C, isn’t excited about pent up demand for what ever product they sell, than they’re just not a good sales person.
Second off....you don’t know what you’re talking about at all. I’ve had at least 20 customers already tell me when we open to call because they are ready for new cars and my company itself has 300 leads to follow up on. The demand is there. Will there be a percentage of people so negatively affected by this that they can’t get cars, of course. But a very good portion will also want them.
Steve... you are an asshole. I don't know you either, but your response is very well... car sales person... slimy that is.
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As I reread what I wrote, I realize that it came out a lot worse then I had meant it to. I am truly sorry, as I was in no way meaning to question you or your integrity. I should have just written that I think the economy is going to be in real trouble the longer this goes on and I would think that the last thing on people's minds would be to purchase new cars or homes or other big ticket items. I hope I'm completely wrong and I hope you do great and are right. Again, sorry, it came out in text very snarky and it wasn't meant to be. All the best to you.
Thank you. I appreciate that. Best to you as well.
This also backs up my last you are a slimy car sales person. He apologizes for his comments which you blew up with a F U! Where is your apology for over reacting like a little baby. Awwww did he not agree with with you wahhhhhh!
And there are slimy people in any profession, not just sales. And all Steve said was there's absolutely demand and he's looking forward to working again and giving his customers what they want (sounds like a win win). He isn't preying on people that can't afford it like you are making it seem.
Very very strange.
And there are slimy people in any profession, not just sales. And all Steve said was there's absolutely demand and he's looking forward to working again and giving his customers what they want (sounds like a win win). He isn't preying on people that can't afford it like you are making it seem.
Very very strange.
Oh I totally agree there are slimy people everywhere and there are good people everywhere. There is slimy IT guys which is the field I work in and there are non-slimy car sales people. Saying that, this guy starts off with a F U and didn't even apologize for it after the guy apologizes. He has the nerve to talk about integrity... please.